“Sometimes the hardest thing about saving money is just getting started.”

This Bank of America article provides a step-by-step guide for simple ways to save money–money that can then be used to pursue your financial goals.  To learn more, check out the 8 steps below.

1. Record your expenses. Ideally, you can account for every penny you spend for the big items like mortgages, credit cards, and even small items like a coffee and snacks.
2. Make a budget. Once you know how you spend, you can compare your income to your expenses and make changes, if necessary.
3. Plan on saving money. Your budget should contain a savings category.  Ideally, savings should account for 10 to 15 percent of your income.
4. Choose something to save for. One of the best ways to save money is to set a goal.  Possible goals include saving for a vacation, the down payment for a house, retirement, or anything important to you.
5. Decide on your priorities.  Prioritizing goals can give you a clear idea of what is most important and helps to remind you why you are saving money.
6. Pick the right tools. There are many saving options and the choice often depends on the amount of time before you need the money.  Often, money for short-term goals is placed in savings accounts.  Money for long-term goals may involve stocks, bonds, or mutual funds.
7. Make saving automatic. Banks offer automated transfers between checking and savings accounts.  Automated transfers are great because you don’t have to make a decision to save or invest; it just happens.
8. Watch your savings grow. Checking your progress every month helps you stick to your personal savings plan.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

• Discuss the relationship between income, expenses, and establishing a systematic savings program.
• Help students understand how saving small amounts over time can help obtain goals that can change their lives.

Discussion Questions

1. At the end of the month, many people wonder where their money went!  Why is it important to determine how you spend your money?
2. How can a budget help you find the money needed to establish a savings program built on the goals you want to achieve?